Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Bitcoin (BTC) Market Update
Many traders are in a state of panic after DeepSeek’s market crash, with Bitcoin also experiencing a significant drop. However, if we analyze the situation objectively, this movement is not surprising. It was simply a necessary retracement within the $100,000 to $102,000 range.
Looking at the chart, we can identify the presence of a Fair Value Gap (FVG), which occurs when there is an imbalance in price action between three candles. This imbalance results from a rapid price movement that leaves inefficient order execution. To restore balance, the market often revisits these areas before continuing to the next price levels.
Bitcoin’s recent decline wasn’t a crash—it was a normal retracement. There is no reason to panic or assume the bull market is over. This kind of movement is healthy and expected in a strong uptrend.
If we apply moving averages to the analysis, we see that the FVG aligns perfectly with key moving average levels. This suggests that the price merely consolidated around its moving average, reinforcing the idea that the market structure remains bullish.
Bitcoin has simply formed a new higher low. Previously, the support range was around $89,000 to $92,000, and now we see a potential higher low between $97,000 and $102,000. If Bitcoin maintains its price within this range, the uptrend remains intact. While the price action may appear slow or consolidative, the market is still bullish.
Furthermore, using the trend ribbon indicator, we can clearly see that Bitcoin remains in a bullish phase. This also highlights that we are within an ideal buying zone for long-term investors.
Analyzing the MACD (Moving Average Convergence Divergence), we observe that the positive momentum persists. While some red bars have appeared, these are merely indications of a typical market retracement rather than a shift in trend. This is a normal occurrence in any bullish market cycle.
Similarly, the Relative Strength Index (RSI) remains above the median line, indicating that buyers are still in control. This further supports the argument that the market structure remains strong and that there is no significant reason for concern.
Whenever negative news circulates, it’s essential to double-check the charts before reacting emotionally. Market sentiment can be influenced by major players attempting to create fear, leading retail traders to panic sell while institutions accumulate assets at discounted prices.
Final Thoughts
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